Infrastructure

East Africa’s Longest Pipeline Project Ready to Kick Off

The first 100 kilometres of pipes have arrived in Dar es Salaam.

Updated on

December 19, 2023

A picture of pies of crude oil pipelines — The pipeline is expected to move 216,000 barrels of oil per day. PHOTO | Getty Images

The long-awaited East African Crude Oil Pipeline, EACOP, is just about to start following arrival in Dar es Salaam port in Tanzania of 5,000 pipes.

Project Coordinator Safiel Msovu says they are planning to start laying the first hundred kilometres in April 2024 aiming to complete in 2025.

Spanning 1,443 kilometres, the Hoima-Tanga crude oil pipeline is expected to be the longest electrically heated crude oil pipeline in the world.

A total of 1,147km of the pipeline will pass through Tanzania and 296km in Uganda – facilitating the movement of Uganda’s crude oil from Kabaale, in the western Hoima region, to Chongoleani in Tanzania.

The 24-inch diameter pipeline is expected to move 216,000 barrels of oil per day for $12.2 per barrel by the start of 2026.

It will be heated to keep the crude liquid enough to flow.

“The project is now set to begin its construction phase,” Mr Msovu said while inspecting the pipes at the Dar es Salaam port last week.

“The recently delivered pipes have a maximum length of 100 kilometres. We have initiated the process of moving them from Dar es Salaam to Tabora, the project’s centre, and from there they will be distributed to other project locations.”

The development marks a major milestone for the $5 billion project that has been plagued by a myriad of issues that have threatened its execution.

In 2021, for example, at least 10 banks walked away from the venture, terming it an environmental risk that would produce 34 tonnes of carbon dioxide annually.

The withdrawal led to a project cost escalation from the initial estimate of $3.55 billion to $5 billion – forcing the shareholders of Eacop to source more money.

In September last year, global oil giant TotalEnergies, which holds a 62% stake in the Eacop project, was reportedly being pressured by European Union lawmakers to delay the project to address “environmental and human rights concerns”.

Uganda and Tanzania dismissed claims by the EU parliament that the Hoima-Tanga oil pipeline project violates environmental and human rights standards.

In February 2022, China National Offshore Oil Corporation and TotalEnergies signed a $10 billion deal to develop Uganda’s energy resources and undertake the EACOP project.

TotalEnergies later signed a deal with China Petroleum Pipeline Engineering for the construction and supply of line pipe, a move that tilted the project to Beijing.